Hotel and Hospitality Management Software Market Size, Share & Growth Report 2024-2032

Hotel and Hospitality Management Software Market Insights

According to Zion Market Research, the global Hotel and Hospitality Management Software Market was worth USD 3.48 Billion in 2023. The market is forecast to reach USD 5.37 Billion by 2032, growing at a compound annual growth rate (CAGR) of 4.92% during the forecast period 2024-2032. The report offers a comprehensive analysis of the market, highlighting the factors that will determine growth, potential challenges, and opportunities that could emerge in the Hotel and Hospitality Management Software Market industry over the next decade.

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Market Overview    

Hotel management software is a technology that allows hotel operators and owners to streamline their administrative tasks while also increasing their bookings in both the short- and long term. It is a platform, which simplifies hotel operations with the help of automation. For instance, it covers all aspects of hotel management including reservations, housekeeping, guest check-in/check-out, back-office, front-office, maintenance, and billing. The rapidly changing trends in consumer behavior and technology are expected to open new markets and opportunities.

Moreover, this software system suits other property types such as motels, bed & breakfasts (B&Bs), guest houses, serviced apartments, resorts, restaurants, and vacation rentals.

COVID-19 Impact Analysis:

The global Hotel and hospitality management software market has witnessed a slight decline in the sales for short term due to the lockdown enforcement placed by governments to contain COVID-19 spreading. The restrictions imposed by various nations to contain COVID had stopped production resulting in disruption across the whole supply chain. Moreover, the pandemic has resulted in a deep crisis with the imposition of travel restrictions across the globe and the suspension of flights in a global effort to contain the spread of the virus. According to the latest updates from IATA, ICAO, the Airports Council International (ACI), the UN World Tourism Organization (UNWTO), the World Trade Organization (WTO), and the International Monetary Fund (IMF), the international air passenger traffic in 2020 experienced a drop of about 50-55% as compared to 2020 baseline. However, the world markets are slowly opening to their full potential and there is a surge in demand for Gynecological devices. The market will remain bullish in the upcoming year.

 The decrease in the global Hotel and hospitality management software market size in 2020 is estimated based on the COVID-19 outbreak and its negative impact on the economies and industries across the globe. Various scenarios have been analyzed based on inputs from multiple secondary sources and the current data available about the situation.   

Growth Factors

The rapid growth in the tourism and hospitality industry is the major factor driving the growth of the hotel and hospitality management software market. The tourism and hospitality industry is considered the third largest sub-segment in the services sector which includes trade, repair services, hotels, and restaurants.

Increased adoption of hotel and hospitality management software is expected in the coming years owing to the increasing need to minimize expenditure and operational costs. The other benefit of using the software is that it reduces the dependency on manual processes. The efficiency of the software may get hampered owing to factors such as power outages, virus attacks, and others thus limiting the market growth.

Hotel and Hospitality Management Software Market: Report Scope

Segment Analysis Preview

Based on hotel type, the market is segmented into Business Hotels, Heritage and Boutique Hotels, and Resorts and Spas. Business hotels contribute a major share in the growth of the hotel and hospitality management software market. The increased facilities that are provided by the business hotels such as unified communication capabilities help the business people and other guests to conduct meetings and conferences. Thus it is estimated that this segment will register comparatively high growth in the future years.

The guest service management system is anticipated to grow at the highest CAGR during the forecast period. Increasing demand for automated real-time optimized guest services and the rise of demographic growth is expected to propel the market growth shortly.

Based on deployment type, the on-premises segment was the leading segment and it accounted for the major share of total revenue generated in 2023. This growth is mainly due to the increasing adoption of on-premises application software on account of the rising need to improve business productivity.

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Region Analysis Preview

North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa are key regional segments of the global hotel and hospitality management software market. Asia-Pacific is anticipated to remain the leading region over the forecast period. The market is well developed in the Asia Pacific region owing to the high investments that are made for the development of the market.

Moreover, According to UNWTO, Asia-Pacific registered about 320 million tourist visitors in 2017. Also, East Asia has historically performed well in the region, led by Japan with a growth in the arrival of tourist visitors by 19% in 2017. State-of-the-art, strong safety and health conditions, and ICT-equipped infrastructure are the major factors for the growth of the hotel and hospitality management market in the Asia-Pacific.

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Key Market Players & Competitive Landscape

The major players operating in the hotel and hospitality management software market are;

• Johnson Controls
• Jonas Software
• NEC Corporation
• Oracle Corporation
• Protel hotel-software GmbH.
• Schneider Electric
• Siemens AG

The global Hotel and hospitality management software market is segmented as follows:   

By Hotel Type

• Business Hotels
• Heritage and Boutique Hotels
• Resorts and Spas

By Type

• Hotel Operation Management System
• Integrated Security System
• Hotel Building Automation System
• Guest Service Management System
• Integrated Communication Technology Solutions

By Deployment Type

•  On-premises
•  SaaS-Based

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa